Cyprus Amax Minerals Reports Record Low Copper Costs /

In First Quarter 1999 of 49 Cents Per Pound DENVER (PROTEXT) - Cyprus Amax Minerals Company (NYSE: CYM)today reported a 1999 first quarter loss of $26 million or 33cents per share, compared with 1998 earnings of $5 million, orbreak-even earnings per share. First quarter 1999 operating earnings were $31 million lowerprimarily because of reduced metal realizations -- 24 percent incopper and 19 percent in molybdenum -- and reduced coal andequity investment earnings, partially offset by substantiallylower copper production costs and lower interest costs. Milton H. Ward, Chairman, President, and Chief ExecutiveOfficer stated, "Although the lower copper and molybdenum pricesreduced revenue on produced sales by about $67 million from lastyear's first quarter, we were able to reduce costs by about $35million. As a result, our copper and molybdenum operations wereable to generate profits even with copper realizations onlyaveraging 66 cents per pound and molybdenum realizationsaveraging $4.14 per pound in the quarter. Over the last twoyears, we have been able to reduce our copper cash costs by over30 percent to our first quarter 1999 average of just 49 cents perpound, and we have continuous improvement ingrained in ourorganization." Ward added, "Our coal operations were able to reduce theirtotal costs by about $7 million from last year's first quarterand corporate and interest expense were down by $13 million fromlast year's first quarter. Unfortunately, losses from our equityinvestments, Kinross Gold, Australian Coal and Amax MetalsRecovery, were $10 million in the quarter versus break-even inlast year's first quarter. Our Australian Coal operationscontinue to improve and would have reported first quarter profitsexcept for the effects of an Australian dollar hedge book most ofwhich will be closed out by the end of this year. We expect to beable to dissolve our equity investment in Amax Metals Recovery bythe end of the year. Kinross Gold operations are continuing toimprove and their losses are a direct result of today's low goldprices." Ward concluded, "The possible sale of our coal company iscontinuing on track. The Company, with its advisors, is currentlyclarifying and negotiating the terms of several proposals.Although there can be no assurance as to the timing or finalterms of any transaction or whether ultimately any transactionwill be completed, we expect to bring this process to conclusionby the end of the second quarter."

FIRST QUARTER HIGHLIGHTS

(Allcomparisons are versus first quarter 1998 unless otherwisestated): (Segment income is earnings before corporate overhead,interest, equity and other, income taxes, and minority interest.) COPPER/MOLYBDENUM -- Copper/Molybdenum earned $7 million, $31 million less thanin 1998. -- Copper realizations averaged 66 cents per pound, 21 centslower than in 1998. -- The copper price protection program in 1998 favorablyimproved 1998 earnings by $21 million. There are no copper priceprotection programs in place for 1999 or future years. -- Copper production increased to 254 million pounds from 234million pounds due to higher production from both the domesticand South American mines due to productivity improvements. -- Copper net cash costs were reduced to 49 cents per pound,even though the molybdenum by-product credit was 3 cents less perpound. Excluding the by-product credit, net cash costs were 11cents per pound lower or 16 percent. This reflected lower costsat all operations and included record low smelting and refiningcosts. -- The smelter set records for smelter throughput, anodeproduction and lowest smelting costs. Additionally, the refineryset a production record. -- Cost of goods sold dropped 11 cents to 64 cents per pound. -- Primary molybdenum earnings decreased from $10 million to$3 million primarily due to 94 cents per pound lower molybdenumrealizations and lower sales volumes. COAL -- Coal earned $19 million, $6 million lower than 1998,excluding the 1998 first quarter earnings of $5 million from thesold coal properties. -- The continued recovery efforts resulting from theunderground fire at the Willow Creek mine that occurred in late1998 cost $6 million in the quarter. Limited continuous minerproduction resumed at Willow Creek in late March 1999 and thelongwall is expected to be operational in the third quarter. Thelosses that have and are being incurred are expected to bepartially offset by insurance recoveries. Insurance proceeds arereflected in income as claims are settled. -- Excluding the impact of the properties sold in the secondquarter of 1998, production of 17 million tons was one milliontons lower than 1998, and sales of 16 million tons were twomillion tons lower than 1998. -- Powder River Basin's lower production was a result of adecision to participate less heavily in the spot market and toutilize only our most efficient stripping equipment. -- The Twentymile, Cumberland and Shoshone mines continuedtheir strong operating performance during the first quarter byreducing operating costs and enhancing productivity. -- The 1999 first quarter included one longwall move atSpringvale and it is anticipated that three longwall moves willoccur in the 1999 second quarter. EXPLORATION -- Exploration expense was $3 million, $7 million lower thanin 1998, principally due to constraining exploration spending in1999 in response to low copper prices. OTHER -- All Other Minerals reported a loss of $2 million comparedto earnings of $8 million in 1998. The $10 million unfavorablevariance is due to the absence of earnings from the Lithium andAmax Gold businesses that were sold or merged in 1998. -- Revenue of $449 million was $283 million lower than in 1998due to lower copper, molybdenum and coal realizations and theabsence of revenues due to the sales of eastern coal propertiesand lithium and the merger of Amax Gold in 1998. -- Equity Investments and Other incurred a loss of $10 millioncompared with break-even earnings in 1998. Oakbridge reported aloss of $5 million compared with break-even earnings in 1998. Theloss is due to the effects of an Australian dollar hedge book,which should be mostly closed out by the end of 1999.Additionally, equity losses of $3 million and $2 million forKinross and Amax Metals Recovery Inc., respectively, wereincluded. Kinross' loss is attributable to the current low goldprices. -- Net interest expense of $31 million was $12 million lessthan 1998 reflecting the significant reduction in debt. -- Income taxes reflected a benefit of $4 million due to theloss during the period and that tax benefits are not recognizedon foreign equity losses and exploration expenses. -- Since the Board approval in August 1998 of a program to buyback common shares on the open market, 1.5 million shares havebeen purchased through April 20, 1999 at an average cost of$10.74 per share or $16 million. No repurchases were made duringthe first quarter of 1999. Cyprus Amax Minerals Company, headquartered in Englewood,Colorado, is a leading producer of copper and coal, the world'slargest producer of molybdenum, and holds a 30% interest inKinross Gold Corporation. Cyprus Amax is exploring for mineralsworldwide. Actual results may vary materially from any forward-lookingstatements the Company makes. Refer to the Cautionary Statementand Risk Factors contained in the Company's 1998 Form 10-K.

Cyprus Amax Minerals Company

Key Operating Data

Three Months Ended March 31

Three Months Ended

March 31,

1999

1998

Copper/Molybdenum

Copper Sales Volume - Millions of Lbs.

304

273

Produced Copper Sold - Millions of Lbs. 286

243

Copper Production - Millions of Lbs.

254

234

Average Realization - $/Lb. of Copper

.66

.87

Cost of Sales - $/Lb.

.64

.75

Net Cash Cost - $/Lb.

.49

.57

Full Cost - $/Lb.

.62

.72

Molybdenum Sales - Millions of Lbs.

14

16

Molybdenum Production - Millions of Lbs. 16

15

Average Realization - $/Lb.

4.14

5.08

Coal(1)

Sales - Millions of Tons (2)

16

18

Production - Millions of Tons (2)

17

18

Average Realization - $/Ton

11.25

11.87

Average Cost of Sales - $/Ton

10.24

10.67

Average Cash Cost - $/Ton

8.81

9.02

Average Unit Cost - $/Ton

9.98

10.83

(1) Restated in 1998 to exclude properties sold in the secondquarter of

1998.

(2) Includes Oakbridge equity share.

Cyprus Amax Minerals Company

Consolidated Statement of Income

Three Months Ended March 31

(In Millions, Except Per Share Data)

Three Months Ended

March 31,

1999

1998

Revenue

$449

$732

Costs and Expenses

Cost of Sales

345

534

Selling and Administrative Expenses

18

27

Depreciation, Depletion and Amortization

73

107

Exploration

3

10

Total Costs and Expenses

439

678

Income From Operations

10

54

Interest Income

4

4

Interest Expense

(36)

(48)

Capitalized Interest

1

1

Equity Investments and Other

(10)

--

Income (Loss) Before Income Taxes

and Minority Interest

(31)

11

Income Tax Benefit (Provision)

4

(6)

Minority Interest

1

--

Net (Loss) Income

(26)

5

Preferred Stock Dividends

(5)

(5)

Income (Loss) Applicable to Common Shares $(31)

$--

Earnings (Loss) Per Common Share

Basic and Diluted

$(.33)

$--

Weighted Average Common Shares Outstanding

Basic

90.4

93.7

Diluted

100.1

103.3

Common Shares Outstanding at End of Period 90.5

93.7

Cyprus Amax Minerals Company

Financial Summary by Business Segment

Three Months Ended March 31

(In Millions)

Three Months Ended March31,

Earnings

Sales Revenue

fromOperations

1999

1998

19991998

Copper/Molybdenum $276

$335

$7$38

Coal

172

303

1930

Exploration

--

--

(3)(10)

All Other Minerals

1

94

(2)8

Total

$449

$732

2166

Corporate

(11)(12)

Interest, Net

(31)(43)

Equity and Other

(10)--

Income (Loss) Before

Income Taxes

and Minority Interest

(31)11

Income Tax Benefit

(Provision)

4(6)

Minority Interest

1--

Net Income (Loss)

$(26)$5

Cyprus Amax Minerals Company

Consolidated Balance Sheet

(In Millions)

March 31, December31,

19991998

ASSETS

Cash and Cash Equivalents

$273$353

Accounts Receivable, Net

6448

Note Receivable, Net

6069

Inventories

381386

Prepaid Expenses

4352

Deferred Income Taxes

1613

Total Current Assets

837921

Properties - At Cost, Net

3,7993,842

Equity Investments

337345

Other Assets

218233

Total Assets

$5,191$5,341

LIABILITIES and SHAREHOLDERS' EQUITY

Short-Term Debt and Current Portion of

Long-Term Debt

$138$161

Other Current Liabilities

446510

Long-Term Debt

1,6781,677

Capital Lease Obligations

4141

Deferred Employee and Retiree Benefits

349345

Deferred Closure, Reclamation and

Environmental

280300

Deferred Income Taxes

5457

Other Noncurrent Liabilities and

Deferred Credits

5559

Minority Interest

3234

Total Shareholders' Equity

2,1182,157

Total Liabilities and

Shareholders' Equity

$5,191$5,341

Cyprus Amax Minerals Company

Consolidated Statement of Cash Flows

Three Months Ended March 31

(In Millions)

Three MonthsEnded

March 31,

19991998

Operating Activities

Net Income (Loss)

$(26)$5

Adjustments to Reconcile Net Income (Loss) to

Net Cash Provided by Operating Activities

Depreciation, Depletion, Amortization

73107

Deferred Income Taxes

(7)2

Changes in Assets and Liabilities Net

of Effects

from Businesses Acquired/Sold

(9)16

Other, Net

88

Net Cash Provided by Operating Activities

39138

Investing Activities

Capital Expenditures

(73)(67)

Capitalized Interest

(1)(1)

Advances and Investments, Net to Affiliates

(3)(15)

Collections on Notes Receivable

11

Proceeds from Sale of Assets

31

Net Cash Used for Investing Activities

(73)(81)

Financing Activities

Net Borrowings on Short Term Debt

617

Net Proceeds from Issuance of Long-Term Debt

33

Payments on Debt and Other Obligations

(3)(17)

Payments on Capital Lease Obligations

(30)(1)

Dividends to Minority Interests

--(3)

Dividends Paid

(22)(23)

Net Cash Used for Financing Activities

(46)(24)

Net Increase (Decrease) in Cash and Cash

Equivalents

(80)33

Cash and Cash Equivalents at Beginning of Year 353250

Cash and Cash Equivalents at End of Period $273$283 ots Original Text Service: Cyprus Amax Minerals CompanyInternet: http://www.newsaktuell.de Contact: Gerald J. Malys,Senior Vice President & Chief Financial Officer, 303-643-5060,John Taraba, Vice President & Controller, 303-643-5244, or MikeRounds, 303-643-5186, all of Cyprus Amax Minerals CompanyCompany News On-Call: http://www.prnewswire.com/comp/224250.htmlor fax, 800-758-5804, ext. 224250 Web site:http://www.cyprusamax.com

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